London, March 11, 2026, 13:09 (GMT).
- Legal & General dropped 5.5% as of 1103 GMT, with shares reacting to a full-year profit miss and a weaker solvency ratio—even after the company rolled out a £1.2 billion buyback.
- The company bumped up its full-year dividend by 2%, now at 21.79 pence, and detailed plans for over £5 billion in shareholder returns between 2025 and 2027. That includes £2.4 billion earmarked for the next year.
- CEO António Simões faces a crucial moment with these results, after the shares trailed Aviva and the FTSE 100 starting early 2024.
Legal & General shares slid over 5% Wednesday, after the British insurer and asset manager disappointed on earnings and disclosed a softer capital buffer—dampening the impact of its record share buyback. The stock ranked as one of the FTSE 100’s steepest decliners during the session.
This reaction carries weight: these results stand out as an early test of Simões’ push to streamline L&G, boost returns, and win back shareholder confidence. Since he stepped in at the start of 2024, shares have barely budged, Reuters noted—Aviva’s stock is up roughly 44%, while the FTSE 100 has gained 34%.
L&G reported a 6% increase in 2025 core operating profit, hitting £1.623 billion, with core earnings per share up 9%. The group bumped its full-year dividend to 21.79 pence per share. With the buyback added in, L&G expects total planned returns to shareholders over the coming year to reach £2.4 billion—feeding into its £5 billion-plus target for 2025-2027.
Attention swung to the pro forma Solvency II coverage ratio, the key gauge of an insurer’s capital cushion, which slipped to 210% from 232% a year ago. As of 1103 GMT, Reuters reported shares were off 5.5% as investors digested the profit shortfall and the softer solvency figure.
“In two years, we’ve reshaped the company,” Simões told Reuters, saying L&G was “very comfortable” with its solvency ratio. In the results statement, he pointed to “meaningful progress in reshaping L&G,” adding the group is set to capture rising interest in retirement income and long-term investment products. Reuters
The story hangs on pensions, retail savings, and private markets. L&G handled £11.8 billion in global pension risk transfer deals for 2025 — with £10.4 billion coming from the UK alone. Assets under management hit £1.2 trillion, and workplace defined-contribution assets under administration jumped 21% to £114 billion.
Comments from outside analysts landed with less enthusiasm. Matt Britzman, senior equity analyst at Hargreaves Lansdown, flagged “a few moving parts” in the results and pointed to “a couple of softer areas” that dragged on the shares. Over at Interactive Investor, Richard Hunter noted the initial response showed management still faces “more work to do” to bring investors back onside. Portfolio Adviser
There’s a risk capital strength could stay in the spotlight if markets take a turn or competition heats up in pension-risk transfers. Simões noted L&G is keeping an eye on fallout from the expanding Iran conflict and mounting stress in private credit. Hugh Fairclough at RSM UK flagged what he called an “asset-sourcing arms race” unfolding in the pension space. Reuters
L&G offloaded its U.S. protection arm and Cala, snapped up Proprium Capital Partners, and struck a partnership with Blackstone—moves driven by Simões in a shift to lower-capital businesses. Yet Wednesday’s slump in the share price signaled investors remain unconvinced, looking for clearer evidence that the overhaul will boost returns without squeezing solvency further.
